Ever hear the term "idle rich". This is what you are referring to. There is also the "working rich" which is probably the category that most M3 owners belong to. Sure there is money, but we have to keep working to sustain the lifestyle.

The problem is that you can't really lump the "top 1%" together. Here's why:

Example:

20th percentile=$20,000
99th percentile=$350,000

This is a factor of 17.5 over 79 percent of the population. The top 1%, however spans over a factor of 1000, if you take $350,000 as the bottom and $350,000,000 as the top (which is still a very conservative top number)

The top of the top 1% is in a far, far, far different place than the bottom of the top 1%.

I am still trying to wrap my head around the statement that someone earning an income which ranks in the top 1% (of household, not personal, income) in the United States of America could be considered upper middle class. That statement absolutely astounds me with its absurdity.

I am still trying to wrap my head around the statement that someone earning an income which ranks in the top 1% (of household, not personal, income) in the United States of America could be considered upper middle class. That statement absolutely astounds me with its absurdity.

__________________

“For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life.”
- John 3:16

I am still trying to wrap my head around the statement that someone earning an income which ranks in the top 1% (of household, not personal, income) in the United States of America could be considered upper middle class. That statement absolutely astounds me with its absurdity.

+1
Everybody has their own reality. 350k might be upper middle class in certain urban centers. But in the vast majority of the country, fly-over country, red states, all those places where, according to Obama, the great unwashed masses are clinging to their guns and bibles, 350k/year, especially if it was consistent year to year, would not ever be described with a phrase that included the words "middle class". Even if you put "upper" in front of it.
If you live in NYC, San Francisco or other high dollar area, then yeah, but that has more to do with what you spend to live, not what you make, and having blinders on and not being very aware of life outside your immediate circle. And it's what irritates the rest of us, the attitude from people that live in places like that... That it's normal to live in a half a million dollar condo or house and like to discuss whether they velet their car or not. It's not normal.

+1
Everybody has their own reality. 350k might be upper middle class in certain urban centers. But in the vast majority of the country, fly-over country, red states, all those places where, according to Obama, the great unwashed masses are clinging to their guns and bibles, 350k/year, especially if it was consistent year to year, would not ever be described with a phrase that included the words "middle class". Even if you put "upper" in front of it.
If you live in NYC, San Francisco or other high dollar area, then yeah, but that has more to do with what you spend to live, not what you make, and having blinders on and not being very aware of life outside your immediate circle. And it's what irritates the rest of us, the attitude from people that live in places like that... That it's normal to live in a half a million dollar condo or house and like to discuss whether they velet their car or not. It's not normal.

YES!!!!! It is the NY metro, and SF metro areas that are distorted in comparison to everyone else, not the other way around. The $500k SF one bedroom condo can get you 3000 sq ft with high ceilings, granite everything and almost an acre of land where I live (in today's market), and this is probably mid-level in terms of cost of living.

YES!!!!! It is the NY metro, and SF metro areas that are distorted in comparison to everyone else, not the other way around. The $500k SF one bedroom condo can get you 3000 sq ft with high ceilings, granite everything and almost an acre of land where I live (in today's market), and this is probably mid-level in terms of cost of living.

"unwashed masses clinging to thier guns and bibles"......LMFAO

Hey I must be one of those unwashed folks, but I do drive my Furrary on bath day once a month .....Steve

+1. I actually think a high end car this past year may have even held it's value better than many investments !!!

This is another good point you tabled here, last month I got a partial statement of some of my investments and the loss was more then 50% of a new M3 ... that is what I was thinking when I looked the statement over in discussed. Then I said to myself others have lost more ... then as I was thinking along those lines it sort of calmed me down ... then all those numbers are on paper, however, it still hurts.

For a better understanding of the issue look up the term HENRY=High Earner Not Rich Yet. At 34 he has not had time to build real wealth yet. Could he buy a $170K car, probably. Should he buy that car right now, that is between him and his financial advisor.

Also as others have said there is a significant difference between $250K in California or New York vs. Kansas. A few years ago I was up for a promotion. I would have relocated from San Diego to Kansas. My wife started searching houses on realtor.com and entered the price of our home and $250K below. Not one hit. At $500K-$750K lower there were four houses in the ENTIRE state. The one I remember was a 12K sqft house on 20 acres.

The one thing I call BS on is the sales guy waiting for an all cash offer. The dealership makes a LOT more money with financing. They simply could not get the deal done.